College Savings Tools
September 19th, 2008
Question: Matlab/math question?
So I’m using the book “Elementary Mathematical and Computational Tools for Electrical and Computer Engineers Using MATLAB” and I’m trying to understand how to write commands.
One problem is this:
A couple establishes a college savings account for their newly born baby girl, deposit $2000 in this account, and commit themselves to deposit an equal amount at each future birthday of the new born. They chose to invest this money with an investment firm that guarantees a minimum annual return of 5%. What will be the minimum balance of the account when the young lady turns 18? (include in your calculation the amount deposited on her 18th birthday.)
I think I know how to write this command but I’m having trouble coming up with the equation.
I know
for m=1:18 and maybe something like this… x(m)=2000+2000m; y(m)= x(m) + 0.05*x(m)?
How do I set up the equation?
Answer: Try this:
x = 0;
for i = 1 : 18
x = (x + 2000) * 1.05;
end
x
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